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The charges were announced Tuesday by Craig Carpenito, U.S. Attorney for the District of New Jersey, alongside the SEC, the Federal Bureau of Investigation and the U.S. Secret Service, which investigates financial crimes.
The hackers used malicious software sent via email to SEC employees. Then, after planting the software on the SEC computers, they sent the information they were able to gather from the EDGAR system to servers in Lithuania, where they either used it or distributed the data to other criminals, Carpenito said.
originally posted by: The GUT
originally posted by: LookingAtMars
You would think the Securities and Exchange Commission would have more "security".
Yeah, the nerve o' them hackers trying to get in on their racket. We're so screwed every which way we look.
The hackers used malicious software sent via email to SEC employees.
Prosecutors say that Radchenko recruited traders to the scheme and allegedly shared the stolen test filings with them. The DOJ gave one example of how the traders allegedly used the information to fatten their brokerage accounts: a test filing for “Public Company 1” was uploaded to the EDGAR servers at 3:32 p.m. on 19 May 2016. Six minutes later, the defendants allegedly stole the test filing and uploaded a copy to their Lithuanian server. A few minutes later, one of the conspirators purchased about $2.4 million worth of shares. At 4:02 p.m., the company released its second-quarter earnings report and announced good times were ahead: it expected to deliver record earnings in 2016. The conspirator then sold the shares for a tidy profit of more than $270,000.